Sec. 215. Authority to establish FMIC Mutual Securitization Company
738 words·~3 min read·
/bill/113/s/1217/rs/section-215·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Corporation shall establish a mutual corporation to be known as the FMIC Mutual Securitization Company . The purpose of the FMIC Mutual Securitization Company is to— develop, securitize, sell, and otherwise meet the issuing needs of credit unions, community and mid-size banks, and non-depository mortgage originators with respect to covered securities; and purchase from its member participants for cash, on a single loan basis, eligible mortgage loans to securitize in a covered security.
Upon the FMIC certification date, the enterprises shall sell to the FMIC Mutual Securitization Company any function, activity, infrastructure, property, including intellectual property, platform, or any other object or service of an enterprise that the Corporation determines necessary for the FMIC Mutual Securitization Company to carry out its activities and operations. The FMIC Mutual Securitization Company shall be an approved issuer for purposes of section 213. Eligibility to participate as a member in the FMIC Mutual Securitization Company shall be limited to— insured depository institutions having less than $15,000,000,000 in total consolidated assets at the time of the institution's initial participation in the Company; or any non-depository mortgage originator having a minimum net worth of $2,500,000.
The Corporation shall take all necessary steps to ensure that the governance provisions of the FMIC Mutual Securitization Company reflect the important role in the mortgage market played by the small and mid-sized member participants of the FMIC Mutual Securitization Company. There is established the position of the Director of the FMIC Mutual Securitization Company who shall be the head of the Company. The management of the FMIC Mutual Securitization Company shall be vested in a Board of Directors (hereafter referred to as the Mutual Board ), which shall include representatives of member participants of the Company, including representatives of— mortgage bankers; community banks; and credit unions.
The Corporation shall make initial appointments of the members of the Mutual Board. Each such initial appointment shall be for a term 1 year. Following the initial 1-year appointment of the members of the Mutual Board, member participants in the FMIC Mutual Securitization Company shall elect the members of the Mutual Board from within the membership of the Company. The Mutual Board shall administer the affairs of the FMIC Mutual Securitization Company fairly and impartially and without discrimination.
Member participants of the FMIC Mutual Securitization Company shall have equal voting rights on any matters before the Company, regardless of the size of the individual member participant. The Mutual Board shall develop standards and procedures to approve the application of member participants in the FMIC Mutual Securitization Company. The standards required under paragraph
(1)shall include standards relating to the safety and soundness of prospective member participants, including standards regarding the underwriting practices of such prospective members. In approving any prospective member to become a member participant in the FMIC Mutual Securitization Company, the Mutual Board may consult and share information with the primary prudential regulator of the prospective member. Information shared pursuant to subparagraph
(A)shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that a prospective member may claim with respect to such information under Federal or State law as to any person or entity other than the Mutual Board or its primary prudential regulator. No provision of this subsection may be construed as implying or establishing that— any prospective member waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply; or any prospective would waive any privilege applicable to any information by submitting the information directly to its primary prudential regulator, but for this subsection. The Mutual Board shall have the authority to charge and collect fees, and may in its discretion increase or decrease such fee, on its member participants for membership in the FMIC Mutual Securitization Company, including to cover the costs of— the initial capitalization of the Company; the purchase of any function, activity, infrastructure, property, including intellectual property, platform, or any other object or service from an enterprise pursuant to subsection (c); and the continued operation of the Company. The fees authorized under paragraph (1)— shall be equitably assessed; and may be based on the volume of eligible mortgages that the member participant sells to the FMIC Mutual Securitization Company. The Mutual Board may coordinate with the Corporation to facilitate the application process for its member participants to become approved servicers of the Corporation pursuant to section 212.